Substandards generally cheaper than counterfeits, says study

A study has
demonstrated for the first time that while counterfeit medicines
are generally priced similarly to genuine products, substandard
medicines are usually noticeably cheaper.

"If the analysis based on these limited data is replicated in other
studies, it has potentially important implications for policy
decisions," says Roger Bate of the American Enterprise Institute,
the author of the report.

"If substandard drug price signals are indeed widespread, combating
such products may be easier than at first thought," added Bate,
noting that price monitoring might enable a tool in identifying
sellers of quality-compromised drugs.

The
analysis extends earlier findings by the AEI which showed that
the price discrepancy between poor quality and good quality drugs
is around 14 per cent.

It now appears that nearly all of that discrepancy is accounted for
by substandard drugs, with the typical discount for counterfeits
negligible at 0.6 per cent and the discount for substandard drugs
averaging 19 per cent.

"The small samples collected so far suggest that some companies and
wholesalers vary their pricing based on quality," says Bate.

"These prices signals could throw up a red flag to a buyer or
regulator, which could ultimately help both purchasers and
regulators fight against dangerous products in their markets."